Indian onion shipments to the United Arab Emirates (UAE) have stirred controversy as accusations arise of unfair pricing, allowing importers in the Middle Eastern nation to reap profits while Indian farmers suffer. Traders and cultivators have voiced concerns over the apparent discrepancy between international prices and those at which Indian onions are being exported.
Export Ban Amidst Supply Crunch and Rising Prices
India, the world's largest exporter of onions, had initially imposed a ban on overseas shipments in December 2023 amidst a domestic supply shortage and soaring prices. Despite efforts such as a 40 percent export tax to temper prices, which had surged to Rs 100 per kilo in some cities, the ban persisted. However, in response to diplomatic requests, India permitted limited exports to select countries, including the UAE.
Pricing Disparity Raises Eyebrows
Recent revelations have sparked outrage among Indian traders, who allege that while farmers were compensated a mere Rs 12-15 per kilo for onions, UAE importers sold the same produce in stores for over Rs 120 per kilo. This stark contrast in pricing has intensified scrutiny over the fairness and transparency of the export process.
Call for Transparency Amidst Export Operations
The Union government's decision to channel onion shipments to UAE through the National Cooperative Exports Limited (NCEL) on a government-to-government basis aims to ensure oversight. However, concerns persist over the determination of pricing and export entities, prompting calls for greater transparency in the process.
